The Journal of American Academy of Business, Cambridge
Vol. 15 * Num.. 1 * September 2009
The Library of Congress, Washington, DC * ISSN: 1540 – 7780
Online Computer Library Center * OCLC: 805078765
National Library of Australia * NLA: 42709473
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Ethanol Demand Growth and Related Impact on Corn and Poultry Markets
Dr. Ellene Kebede, Tuskegee University, Tuskegee, AL
Dr. Curtis Jolly, Auburn University, Auburn, AL
Giap V. Nguyen, Auburn University, Auburn, AL
This paper used the Muth model to exemplify the market linkages among the corn, ethanol and poultry industries. Ethanol demand is price inelastic, but the blenders’ tax credit has a positive and significant effect in lowering the price of ethanol, increasing ethanol demand and increasing corn demand. Information from derived ethanol supply functions was used to compute the marginal effect on poultry prices of changes in ethanol production. Four different elasticities of substitution between corn and non-corn input in ethanol and poultry production were used in the estimation. The result showed that the increase in the elasticity of substitution between corn and non-corn inputs in both industries will reduce the effect on poultry prices. This research indicates a long-run need for non-corn input in both industries in order to reduce the effect on the three markets and the rest of the economy. Ethanol, known as gasohol, has been in the U.S. market since the early 1940s, but economic, environmental and political factors led to the current surge in the use of ethanol. Contributing to the surge were an increase in oil prices, local air pollution, the global climate, dependency on foreign sources, and an interest in enhancing farm incomes (Doornbosch and Steenblik 2007; de Gorter and Just 2007). Between 1980 and 2006, energy in the U.S. increased by 28 percent Petroleum accounted for 17 percent of the increase, and, by 2006, the transportation sector accounted for 67 percent of the petroleum consumed in the U.S. Crude oil imports increased from 34 percent to 65 percent between 1980 and 2007, and world crude prices increased from $13 in 1980 to $90 per barrel by the end of 2007 (Energy Information Agency 2008 and 2008a). Ethanol and biodiesel, the two major biofuels that can blend with and be substituted for petroleum, were non-existent as transportation fuels in the 1980s, but they increased to 375 percent by 2004 (Energy Information Agency, 2008). With some government assistance, ethanol had been in the U.S. market for a long time, but it could not compete with the low price of gasoline (Tyner, 2007). The two main factors contributing to the increase in the demand for ethanol are the banning of Methyl Tertiary-butyl Ether (MTBE) as an oxygenate and the Renewable Fuel Standard (RFS) of the Energy Policy Act of 2005.
Determinants of Perceived Customer-Centrism in Managing Information About Customers
Dr. Joseph S. Mollick, Texas A&M University-Corpus Christi, Corpus Christi, TX
The Determinants of Movie Video Sales Revenue
Dr. Neil Terry, West Texas A&M University, Canyon, TX
Dr. Anne Macy, West Texas A&M University, Canyon, TX
This paper examines the determinants of movie video sales in the United States. The sample consists of 165 films released during 2006. Regression results indicate that the primary determinants of video sales are domestic box office, rental revenue, time from box office to video, sequels, children’s movies, restricted rating, and Academy Award nominations. Specific results include the observation that domestic box office revenue serves as a complement to movie video sales, while rental revenue is a substitute. Children’s movies are worth twenty to twenty-five million dollars more in video sales than other releases, because parents appear to prefer buying over renting children’s movies. Time to video is inversely related to video sales because motion picture companies take advantage of marketing economies of scale by quickly moving films from the box office to the video market. Domestic box office release exposure, foreign box office performance, and budget do not appear to have a statistically significant impact on movie sales revenue. The average budget of making a motion picture for release in the United States has risen to almost fifty million dollars per movie. This rising cost has resulted in motion picture studios seeking multiple sources of revenue including domestic box office, foreign box office, product placement, merchandising, video sales, and video rental revenue. A single movie can be the difference between millions of dollars of profits or losses for a studio in a given year (Simonoff & Sparrow, 2000). The purpose of this research is to analyze the motion picture industry with a focus on the determinants of movie video sales revenue. This manuscript is divided into four sections. First, a survey of the related literature is discussed. The second section provides the model specification. The third section puts forth an empirical evaluation of the determinants of video sales revenue for 165 films released during the year 2006. The final section offers concluding remarks.
Changes in the Disclosure Regulatory Environment and Managers’ Timing of Earnings Announcements
Dr. Kirk L. Philipich, University of Michigan – Dearborn, Dearborn, MI
Managers’ reaction to changes in GAAP has been of interest to accounting researchers for decades. Prior accounting research has documented that managers react to changes in GAAP by changing their investment strategies (e.g. economic consequences) and by changes in their disclosure strategies (e.g. early adoption). This paper investigates if changes in the legal environment may also impact managers’ disclosure strategies. One particular disclosure strategy of interest to accounting researchers is the perceived relationship between earnings news, good or bad, and how quickly this information is released to investors. The timing of earnings announcements based upon the type of earnings news, while appealing, may not always be in the best interest of managers much less investors. This paper examines this managerial behavior over an extended time period during which a landmark legal case set standards for the timing of the release of corporate information (SEC vs. Texas Gulf Sulphur) and a lesser known case that spoke specifically to the release of bad earnings news (Financial Industrial Fund vs. McDonnell Douglas). The results show that before the implications of these cases were known, a strong relationship existed between the timing of the release of earnings information with the type of earnings news being released. Through time, as the ramifications of these legal cases on the disclosure legal environment became well documented and known by corporate managers, this relationship weakened and eventually completely dissipated.
The Utilization of a Succession Plan to Effectively Change Leadership and Ownership in a Small Business Enterprise
Kevin McNamara, Chairman, Millington Lockwood, Inc.
Dr. John G. Watson, St. Bonaventure University
Dr. Carol B. Wittmeyer, St. Bonaventure University
The paper traces the development of a succession plan with the owner of a small business enterprise and the potential buyer of the organization to succeed the original owner in running the enterprise. The buyer was a former employee of the organization with other experience in the industry. This unusual agreement culminated with an exchange of all the outstanding shares of stock from the original owner to the new owner after a specified period of time. The cultural change that took place during this time period is presented. The major benefits and learnings of the succession plan are discussed. Finally, the authors present a succession planning model for a small business enterprise. Millington Lockwood, Inc., is a certified Herman Miller Company furniture distributor located in Western New York and Western Pennsylvania. Millington Lockwood, Inc., was founded in Buffalo, New York, in 1884 by Mr. Millington Lockwood. It is one of the oldest companies in the region. In the fall of 1970, Mr. Kevin McNamara went to work for Millington Lockwood, and in 1971 purchased the company from the then current owner, Mr. Russell Koen who retired from the company. Mr. McNamara’s initial investment was $12,500. He financed $10,000; he had $500 in cash and $2,000 from the proceeds of the sale of his automobile. Under the tutelage of Mr. McNamara, the company grew significantly over the years and sales increased from $600,000 to a level of $7.5 Million in 1992. That year Mr. McNamara decided to sell Millington Lockwood, Inc. He queried his two daughters as to whether or not they wanted to be involved in the company. Both daughters informed him they were not interested in succeeding their father in the company.
International Off-shoring: The Changes in the World Economy
Dr. Fred Maidment, Western Connecticut State University, Danbury, CT
Public policy responses by the major industrialized countries of the United States, the United Kingdom, and Europe to the off-shoring of jobs to developing countries are examined. The differences and the consequences of these policies are discussed. Public policy responses and the importance of these responses to the developed world and to the workers, citizens and, from the perspective of the elected politicians, voters, is emphasized for the future wellbeing of these societies. How the leaders of developed countries choose to deal with the rapidly changing developments in a hyper-competitive, technological, global economy will have great impact on the future success of those societies and the people they represent. For decades the manufacturing sector of the US economy has been sending jobs to less costly locations. Jobs left the Northeast and the upper Midwest for the South in the textile, auto and other industries. Now the textile industry has almost completely left the US and the auto industry is becoming so globalized that it is hard to tell where a car was made. Jobs that can be easily learned in a few minutes on an assembly line will always be in danger of going to the lowest bidder. It does not take very long for a relatively unskilled worker in a third world country to equal the level of proficiency of a much more expensive employee working in a developed country to do jobs requiring little or no skill. Technology in the workplace has changed many things. It has allowed workers to become far more productive, but it has also enabled much of the work to be done outside the developed world in locations in the third world. Jobs that were once reserved for workers with high levels of training and education in the developed world, may now be performed by workers with those same levels of education and training in the developing world. In the service sector/high technology industries, back-office functions are being done by workers in the developing world. This is especially true in the information technology sector of the economy, as well as the financial and other service sectors (Flannery, 2004). There are other forces in play.
Lake Area Tourism: Making the Most of Your Day and Overnight Visitor
Dr. Annette Ryerson, Black Hills State University, Spearfish, SD
Small tourism destinations are feeling the crunch of tightening pocket books. It is necessary for businesses to be aware of have viable market segments in order to service This paper explores the travel habits and expenditures of 973 survey respondents from a Midwestern lake area in South Dakota. Segmentation techniques and core competencies were utilized to determine the most marketable segments for small businesses. Much like other lake area communities, it is believed that this research can be applied to other similar tourist destinations. Unlike package and resort vacations, this research takes place in a recreational lake area where it is possible to spend quality time with friends and family while enjoying camping, boating, fishing and many other activities and not necessarily spending a lot of money. This study seeks to identify the different segments of visitors to the recreational lake area. Nine hundred and seventy three individuals were willing to share their opinions, behaviors and expenditures with regard to group they traveled with. This compilation of data has provided insight into the minds of the lake area traveler. Recent research has indicated that service marketing is more complicated to manage than actual product marketing, due to the intangibility, variability, inseparability and perishability of the product. (Appiah-Adu, Fyall, and Singh 2000). This study will focus upon the local influences of travel and how proper market segmentation can assist the community and local businesses in proper targeting of these segments. It is anticipated that a study of this nature will assist other small communities in their quest for enhanced tourism marketing. When considering a flat economy that is currently hampered by rising interest rates and rising gas prices, it is important to strategically segment the tourist population. “Comprehending visitors’ behaviors is of immense importance in developing actionable service and destination-specific marketing strategies.
Selected Technological Advances and Organizations: Applications and Implications
Dr. Vivek Shah, Texas State University-San Marcos, San Marcos, TX
Dr. Kamlesh Mehta, Peace College, Raleigh, NC
When we think of the technological advances of the 21st century, we wonder how they affect the world around us. From an organization’s point of view, the increased use of technology raises the fundamental question: what are the impacts of technology on the organization? This study examines the financial impact of the internet, the impact of electronic monitoring, the impact of virtual teams, and the impact of Internet security on organizations. The organizations must tailor the use of technology to suit specific needs and purposes. The advances in the Internet and the World Wide Web will continue to change the world around us and the ways organizations conduct their operations in the future. When we think of the technological advances of the 21st century, we often wonder how they affect the world around us. The advances in the Internet and the World Wide Web will continue to change the world around us and the ways organizations conduct their operations in the future. The growth of the World Wide Web has changed the stream of actions and flow of processes in an organization. From an organization’s point of view, the increased use of technology raises the fundamental question: what are the impacts of technology on the organization? The impact the technology has on organizations is both positive and negative. Of the special interest to an organization are the applications of the current technological developments. Therefore, by examining the financial impact of the Internet, the impact of electronic monitoring, the dynamics of virtual teams, and the impact of internet and data security, this study will illustrate the benefits and drawbacks that technology provides to the modern day firms. The Internet is a powerful, influential resource and a robust tool if properly used and leveraged and can allow organizations to flourish in a financial capacity.
Exploring Drivers in the Adoption of Mobile Commerce in China
Jun Zhang, Huazhong University of Science and Technology, China
China, though ranking first over the world in terms of mobile phone users, suffers a small number of Mobile Commerce (MC) consumers. This study explores how Chinese consumers are influenced to adopt MC. We employ a revised Technology Acceptance Model (rTAM) to examining factors affecting Chinese consumers’ attitudes toward this emerging mobile technology and applications. The proposed model was empirically tested using data collected from a survey of mobile phone consumers. Our survey indicates that consumer perceived ease of use (PEOU) influence attitude toward using (ATU) MC. It is also found that consumer’s past adoption behaviour, educational level, age, gender, and occupation affect their adoption behaviour. The majority of positive relationships between PU, PEOU, ATU, past adoption behaviour, and demographics are sopported by the empirical data. Our research also supports the applicability of TAM to examine MC adoption by Chinese consumers and validates the robustness of TAM to study new technologies outside U. S. context. The rapid development of modern wireless communication technology, coupled with the increasingly high penetration rate of the Internet, is promoting mobile commerce (MC) as a significant application for both enterprises and consumers (Lucas and Spitler, 2000). MC refers to commercial transactions conducted through a variety of mobile equipment over a wireless telecommunication network in a wireless environment (Gunsaekaran and Ngai, 2003). Currently, these wireless devices include two-way pagers/SMS (short message systems), wireless application protocol (WAP)-equipped cellular phones, personal digital assistants (PDA), Internet-enabled laptop computer with wireless access capacity, and consumer premise IEEE 802.11(a/b) wireless network devices (Leung and Antypas, 2001).
Business vs. Leisure Travelers: Their Responses to Negative Word-of-Mouth
Dr. Young “Sally” Kim, Shenandoah University, Winchester, VA
Despite the importance of word-of-mouth, very little is known about how existing customers react to negative word-of-mouth (NWOM). This study examines whether and how existing customers respond to NWOM. Using the concepts developed in the existing literatures, this study examines the roles of attribution, trust, and purpose of travel in customers’ responses to NWOM. The study tests the hypotheses using a self-administered mail survey of customers on their lodging experiences. Customers’ attribution (i.e., attributing negativity of the information to the company vs. the communicator) is found to be significant. Trust is also found to have a significant influence on customers’ intentions to spread positive WOM following a negative WOM incident. Finally, the study found business and leisure travelers respond to NWOM differently. Word-of-mouth marketing, buzz marketing, viral marketing, referral marketing---All these jargons appear frequently in newspapers and business magazines, as well as academic journals, pointing to the trend that companies actively pursue promotion of customer-to-customer communication about their products and services. Effective communication with customers has become a daunting task over the years because of media fragmentation, (e.g., numerous cable TV options, the Internet), a large volume of messages presented to customers on a daily basis, a number of choices (brands) available to customers, and consumers’ busy life style (e.g., little time to spend in front of TV). Faced with this challenging communication environment, many companies started to realize a need to leverage the power of word-of-mouth (WOM). Information disseminated through WOM is usually perceived as more credible and powerful than the company’s own advertising message (Traylor and Mathias 1983). Thus, some companies (e.g., Sony-Ericsson) have employed a creative marketing communication program, in which company-hired actors pretend as real consumers of the product and lure potential customers (passersby on a busy street) in an attempt to influence their perceptions of the product (e.g., Sony-Ericsson cellular phone with camera, Vespa) (Business Week 2001).
Roadmap of Co-branding Positions and Strategies
Wei-Lun Chang, Tamkang University, Taiwan
Co-branding, is a marketing arrangement to utilize multiple brand names on a single product or service. Basically, the constituent brands can assist each other to achieve their objectives. Co-branding is an increasingly popular technique for transferring the positive associations of one company’s product or brand to another. In the absence of a clearly defined strategy, co-brand mergers are frequently driven by short-term goals to mistrust and failure. In this paper, we identify critical factors of a successful co-branding strategy, co-branding position matrix, and co-branding strategies respectively. We also utilize certain real-world cases in order to demonstrate our notions. Finally, this research aims to provide clues and a roadmap for future research in co-branding issues. Co-branding, is a marketing arrangement to utilize multiple brand names on a single product or service. Also, co-branding can be seen as a type of strategic alliance between two parties. Basically, the constituent brands can assist each other to achieve their objectives. Obviously, creating strategic alliances by engaging in co-branding has become increasingly popular across many industries. A successful co-branding strategy has the potential to achieve excellent synergy that capitalizes on the unique strengths of each contributing brand. Co-branding is an increasingly popular technique for transferring the positive associations of one company’s product or brand to another. In other words, creating synergy with existing brands creates substantial potential benefits of various kinds. As Gaurav Doshi notes in a recent 2007 article, such synergy: (1) expands the customer base (more customers), (2) increases profitability (3) responds to the expressed and latent needs of customers through extended production lines), (4) strengthens competitive position through a higher market share), (5) enhances product introductions through enhancing the brand image (6) creates new customer-perceived value, and (7) and yields operational benefits through reduced cost. The philosophy behind co-branding is to attain advanced market share, increase the revenue streams, and improve competitive advantages through customer awareness. A great deal of attention has been focused on selecting a co-branding partner-not only the essentials of the potential parties but a series of steps in selection process.
The Effects of Frequent Commercial Exposures on Affective and Cognitive Response of Chinese-American Audience
Dr. Fu-Ling Hu, Hsing Wu College, Taipei, Taiwan
Chao Chao Chuang, Hsing Wu College, Taipei, Taiwan
Frequency of TV advertising exposure is one of the crucial determinants of increasing brand recall and awareness. However, from consumers’ point of view, as the quantity of advertising rises, the attitude of the audience toward the advertising message also worsens and leads to tedium. TV commercial is one of the most effective vehicles to communicate with Chinese-American target audience. Thus, with raising TV advertising costs, it is important to measure the commercial effects and investigate the consumers’ responses toward frequent commercial exposures. In the first part, the author discusses the research problem in terms of TV commercial issues related to Chinese-American audience. The second part reviews the literature related to consumers’ responses toward frequent advertising stimuli. Finally, the paper concludes the literature review and proposes implications, as well as directions for future research. In the past few decades, most research studies related to advertising effects used two types of psychological responses, affect and cognition, to measure consumers’ attitudes toward advertisements and purchase intentions. A large number of research studies have been made either from affective or cognitive system measuring individual differences when exposed to a stimulus. Even if the impact of cognitive and affective interrelated processing style had been made, it only focused on examining the consumers’ responses to advertisements in general (Ruiz and Sicilia, 2004). However, previous research rarely deeply discussed how these two systems interdependently influence consumers’ behaviors toward advertisements for a particular type of medium or target market. In fact, no studies have ever tried to investigate Chinese-Americans’ affective and cognitive response to frequent TV commercial exposures. Many of the current studies examine the effects of frequent commercial exposures on responses in general that may not correctly represent a specific advertising medium on a target audience. Due to the intimate relationship between affect and cognition, this research reviews two response systems simultaneously to examine consumers’ responses toward frequent commercial exposures. Most recent scholars reserve the term “ affect” to describe an internal feeling state (Cohen, Pham, & Andrade, 2006). Affective responses usually involve emotions, feelings, and moods (Olson & Peter 2005).
Factors Affecting M&A Success: A Starting Point for the Topic Renaissance
Gabriele Carbonara, Parthenope University of Naples
Caiazza Rosa, Parthenope University of Naples
Despite a continuing increase in the number of mergers and acquisitions (M&A), it has been argued that there is an insufficient theoretical understanding of the elements that affect success of M&A process. This paper contributes to research on mergers and acquisitions by developing an integrative framework of the merger and acquisition process evidencing main elements that lead merged firms to achieve a competitive advantage. In a perspective of renaissance and renewal of this complex topic, the paper proposes a framework, based on classical sources and well established literature, that improves and perfects previous knowledge identifying the main factors affect firms’ ability to create distinctive competencies through M&A. This framework resuming the most delicate and important aspect of M&A process that affect the success of this operation is a starting point for a renaissance and renewal of this complex topic. The ambition of the merger and acquisition framework is nothing less than to identify factor affecting competitive advantage derived from the process of combination of two businesses and provide guidance to managers for avoiding to destruct instead of create value. Unordinary events, such as M&A, expose firm to the high risk of uncertainty depending on difficulties to combine two entities with different structure, processes, procedures, systems and cultures. Despite the empirical evidence that, on average, mergers fail to create value for the acquiring firm’s shareholders, corporations continue to employ this strategy at ever-increasing rates.
Leadership and the Future: Gen Y Workers and Two-Factor Theory
Arthur M. Baldonado, Ph.D.
Janice Spangenburg, Ph.D.
Today’s workforce is as diverse as ever. This paper explores the motivational needs of Gen Y and their impact in the workplace based on Herzberg’s two-factor theory of motivation. The participants consisted of Gen Y students at the University of Hawaii. The author used a researcher-developed, written survey as research methodology. The findings of the study revealed that Gen Y cohort placed great importance to both hygiene and motivator factors in their motivational needs. Growth and personal life were both important to Gen Y students. Managers must be flexible in their managerial approach to Gen Y workers. Millennials, Echo Boomers, Generation Y (Gen Y), and Nexters are some of the descriptors used to identify and label the newest generational cohort entering the workforce (Dulin, 2005). Referred to as Gen Y in this study, Gen Y workers (individuals born after 1980) have become a stronger and larger group in the workplace with more than 29 million members entering the workforce in the last seven years (Martin & Tulgan, 2001). Known as “Nexters” (Schlichtemeier-Nutzman, 2002, p. 35) because they are the next wave of employees and “Echo Boomers” (p. 36) because they are similar to their Baby Boomer predecessor’s size, Gen Y began entering the workplace during the summer of 2000. Gen Y, born after 1980, is 81 million strong, comprising 30% of the current United States population (Dulin, 2005). With a very focused and involved Boomer parents, Gen Y grew up with busy schedules—sports, music lessons, and scheduled play-dates occupying much of their time. Gen Y has always had input in family decisions because their parents constantly communicated with them (Lancaster & Stillman, 2002). In the workplace, Gen Y appears to be more idealistic than Generation X, but a little bit more realistic than Baby Boomers. Researchers describe Gen Y as “considerably more optimistic and more interested in volunteerism than Generation X” (Schlichtemeier-Nutzman, 2002, p. 49).
The Determinants of Noneconomic Factors Affecting Economic Growth
Dr. Sontachai Suwanakul, Alabama State University, Montgomery, AL
The Scope of economics has broadened considerably in recent decades. Recently economists have reached a consensus that successful explanation of economic performance must go beyond narrow measures of economic variables to encompass political and social forces. Culture can affect economic outcomes through economic preference. Religious beliefs affect the economy by fostering personal traits. While stronger religious beliefs stimulate growth because they help sustain individual behavior that enhances productivity. High trust is conducive to economic growth. Economic growth is influenced by many factors including culture, tradition, religion, and ethnicity. However, economists typically neglect the influences of these factors; though they realize the fact that successful explanations of economic growth must go beyond narrow measures of economic variables to encompass cultural and social forces. Classical economists, such as Adam Smith, John Stuart Mill, Karl Marx, and Max Weber, were comfortable in using cultural explanations for economic phenomena. Unfortunately, since 1930s the institutional economics has gradually given way to the neoclassical theory of general competitive equilibrium, which formalized the analysis of idealized competitive markets. From the perspective of general equilibrium theory, nonmarket factors, such as culture and religion, were not phenomena of intrinsic interest. It is because the fact that the notion of culture is so broad and the channels through which it can enter economic discourse so ubiquitous that it is difficult to design testable, refutable hypotheses [Manski, 2000: Guiso, it el., 2006]. In the decades immediately after World War II, as economic theory increased its mathematical sophistication and the set of tools at its disposal expanded, no need was felt to introduce additional potential explanatory variables, especially those hard to measure.
Optimization of Multi-Currency Holdings for Multinational Corporation
Dr. Ken Hung, Professor, National Dong Hwa University, Taiwan, R.O.C.
Yu-Ching Ho, National Dong Hwa University, Taiwan, R.O.C.
For multinational corporations, holding multi-currency becomes necessary to fulfill daily operation. The objective of this study is to build a new multi-currency model which can optimize foreign currency holdings to minimize total costs and increase capital investing efficiency. The ARMA-GARCH model was used to forecast foreign exchange rate to meet the real situation. Finally, this study uses GA to solve an optimal order quantity problem of foreign currency for the local multi-national corporation. The results can provide the decision makers of multi-national corporations to optimize multi-currency holdings. With the growth of international business, more and more companies hold foreign currencies as part of their working capital. As for multinational corporations, holding multi-currency also becomes necessary to fulfill daily operation. Holding foreign currency can avoid loss from volatile exchange rate and reduce transaction costs. However, it also creates potential opportunity costs from returns may be earned from other investments. How to optimize multi-currency holdings to minimize total costs becomes an important task for multinational corporations. Bessembinder (1994) and Chakrabarti (2000) indicated that holding a foreign currency position imposes opportunity costs and exchange rate risk. Lin and Chen (1997) used the Hamidi and Bell’s (1982) inventory model to analyze data of a multi-national corporation. Their results showed that the bank's U.S. dollars demand is normal distributed and the over holding of U.S. dollars results in inefficient capital usage and higher holding costs. To build a new multi-currency model, the ARMA-GARCH model is used to forecast the foreign exchange rate to meet the real situation. The generalized autoregressive conditional heterosedastic autoregressive (GARCH) model is now one of the most widely used model to forecast the time-varying volatility observed in many financial returns especially in stock returns, interest rates and foreign exchange market (Bollerslev, 1986; Engle, 1982). Genetic algorithm is used as optimization techniques for decision-making problems. It may be an attractive optimal tool for the managers who can design their own cost function for determining the order quantity. According to previous literatures, GA has been already applied in the EOQ inventory model (Braglia and Gabbrielli, 2001; Mondal and Maiti, 2002; Stockton and Quinn, 1993).
Does Trust influence Supply Chain Management?
Dr. Vojko Potocan, University of Maribor, Maribor, Slovenia
Organizations face the question of how to assure their survival and development in the global economy. Their business is important for establishing trust between inside and outside members in their work and behavior. Creation of trust is important also for supply chain management, as an area of integrated work within the frame of the organization and/or as integrated cooperation between different organizations. Supply chain management is a concept that includes the entire supply chain, from the supply of raw materials through manufacture, assembly, and distribution, all the way to the end customer. The nature of the relationships among the different linkages within the supply chain can be viewed on a continuum that goes from highly integrated at one extreme to temporary and short-term trading commitments at the other. The organization can use either the traditional or the modern approach for the formation of the supply chain. The traditional supply chain access is based on considering vertical informational connections. But for most organizations, the vertical connections are not enough, so they extend those with horizontal connections. In this frame the organizational dilemma is how to assure an appropriate level of trust, if we understand trust as a necessary capacity and ability for appropriate work and behavior of the participating members. This contribution discusses two theses: 1) How to define the role and importance of trust in supply chain management, and 2) How to improve the level of trust among supply chain members. A dominant logistics philosophy throughout the 1980s and into the early 1990s involved the integration of logistic with other functions in organizations in an effort to achieve the enterprise’s overall success (Nigel, 1996; Rushton et al., 2001;
The Corporate Governance Characteristics of Financially Distressed Firms: Evidence from Taiwan
Chingliang Chang, Kainan University, Taiwan
The recent financial distress and bankruptcy of the US corporate giants suggest that boards have not performed their fiduciary duties well. This paper examines which corporate governance characteristics, if any, are correlated with financial distress by a sample of Taiwanese listed firms. Hypotheses are tested by combining outside directors, CEO duality, equity ownership by insiders, female directors, board size, multiple directorships, and director tenure. Results from logistic regression analysis show that board independence: boards with larger percentage of outside directors are less likely to fall into financial distress than boards with a lesser percentage. Another result indicates that there is a positive correlation between board size and financial distress. This paper concludes with some thoughts on the need for controlling CEO power when modeling the efficacy of corporate governance. The financial distress of American corporate giants, such as Enron, Worldcom, Adelphia, and Anderson, has led to criticism of boards of directors and accusations that corporate boards aren’t doing their jobs. “We think Enron board was asleep at the switch and fell down on the job,” said Senator Carl Levin a member of the Senate investigations subcommittee investigating the meltdown of Enron. (NYSSCPA. Org News Staff, 2002). Many of the corporate governance reforms are intended to further the ability of directors serving on corporate boards to perform their function effectively. To what extent will these reforms prevent similar financial distress from recurring? (Petra 2006).
How Machs Behave: Self and Peer Ratings
Dr. Loretta F. Cochran, Arkansas Tech University, Russellville, AR
Dr. David W. Roach, Arkansas Tech University, Russellville, AR
Dr. L. Kim Troboy, Arkansas Tech University, Russellville, AR
Faculty members are increasingly asked (and want) to challenge students to think critically about a variety of issues, including their own thinking/performance and the thinking/performance of others. Faculty members try to prepare students for the “real” world. At the same time, class size is increasing at many universities. Though not a substitute for instructor evaluations, self and peer evaluations do offer a mechanism for providing feedback regarding performance. Self and peer appraisals force students to examine critically their own thinking/performance and the thinking/performance of others. In their future work lives, students will almost certainly face the issue of evaluation, either as the rater and/or as the ratee. It is in this context that the current study investigates the use of peer appraisals in the classroom. This study builds on previous research that found students could provide accurate ratings. Given accurate student ratings, we consider if student ratings can be affected by whether or not they expect to interact with and discuss their ratings with ratees. The ability of specific personality attributes, such as Machiavellianism, to moderate this relationship is also considered. Specifically addressed is the impact of the interaction between rater anonymity and power on leniency in subjective evaluation of a qualitative assignment. Preliminary results indicate that there are some differences requiring further exploration. Faculty members are increasingly asked (and want) to challenge students to think critically about a variety of issues, including their own thinking/performance and the thinking/performance of others. Faculty members, especially business programs, try to prepare students for the “real” world. At the same time, class size is increasing at many universities. Though not a substitute for evaluations by the instructor, self and peer evaluations do offer a mechanism for providing evaluative information regarding performance. Self and peer appraisals also force students to examine critically their own thinking/performance and the thinking/performance of others. In their future work lives, students will almost certainly face the issue of evaluation, either as the rater and/or as the ratee. It is in this context that the current study investigates the use of peer appraisals in the classroom. In previous research, students seem to be able to give ratings that mirror those given by faculty (Cochran, Roach, and Mason, 2004). Hence, though an individual student’s ratings may be suspect, the average of several students’ ratings provides a reasonably accurate measure of peer performance (Cochran et al., 2004). This study builds on this finding and explores the impact of individual differences on student ratings. What impact does rater anonymity carry?
A Study of Management Efficiency for International Resort Hotels in Taiwan
Jung-Feng Cheng, National Cheng-Kung University
Dr. Chia-Yon Chen, National Cheng-Kung University
Dr. Chun-Chu Liu, Chang Jung Christian University
In recent years, globalization has increased and the barriers to travel gradually have disappeared, thus promoting rapid growth in tourism worldwide. In 2002, the Taiwanese government began the “tourist double-up strategy” which drove up tourism. Hotel enterprises expanded their branches and national/international foundations and organizations all came in for investment. The doubling of the markets also increased competition. This paper endeavors to understand the business efficiency involved in operating resort hotels by reviewing related document that comment on the advantages and disadvantages of recreational hotels, the relative cooperative efficiency of business types and analyzing the improvement measures of inefficient hotels. This research applies Data Envelopment Analysis (DEA) to calculate the production efficiency, pure technical efficiency, scale efficiency, slack variable analysis, average overall technical efficiency score for independent and chain hotels, average scale efficiency and average pure technical efficiency, efficiency rank for distributed locations, scale returns, and sensitivity analysis for each of the 13 evaluated international resort hotels in Taiwan. The results provide information for future management enterprises. In recent years, globalization has increased and the barriers to travel gradually have disappeared. The rise in developing countries and increases in free trade all promote rapid growth in tourism worldwide. In 2002, the Taiwan government began the “tourist double-up strategy.” The total number of tourists traveling to Taiwan in 2002 was 2,977,692 and the foreign exchange income was $US 4,584 million. In 2006, the tourist number increased to 3,519,827 with an income of $US 5,214 million.
Traditional Small Business Web Site Attitudes, Usage, and Satisfaction
Dr. Steven J. Anderson, Austin Peay State University
Dr. John X. Volker, Austin Peay State University
Dr. Michael D. Phillips, Austin Peay State University
This paper presents the results of a web site usage survey administered to a working population of 292 traditional small businesses and members of the local chamber of commerce of a midsized southern town which produced a net usable response rate of 22%. The traditional small businesses were selected out of a chamber of commerce membership of 1900 by excluding franchised, governmental, insurance, medical, and professional businesses and those employing more than 500 people. The questionnaire, which contained a five point Likert scaled web site attitude section, a specific traditional small business web site ownership and usage section, and a five point Likert scaled web satisfaction section, was developed and administered on a telephone interview basis in November of 2006. Results indicated that overall traditional small business web site usage is greater than literature reviews on small business might suggest with traditional small business web site ownership and usage reported at 60%. Significant differences between traditional small business demographics relative to web site ownership are identified. Significant differences between traditional small business web site attitude responses relative to web site ownership are also identified. A rank ordered profile of traditional small business web site owner’s levels of web site satisfaction is discussed with generally high levels of satisfaction reported. The internet and e-commerce has become an ever more pervasive presence and activity in the economy of both the United States and the world. Although one might expect small businesses to act in an entrepreneurial manner and embrace the web and the internet, a review of the literature indicates that this is not necessarily the case. An SBA (2000) report indicated that selling or e-commerce over the web was not common for most small firms. Given the continued growth and importance of the internet and the World Wide Web it becomes imperative that the role of small business in its development be continually examined.
Gray Competitive Model for Comparison of Household Electronic Appliance Industries in Taiwan and Mainland China
Dr. Kuo-Wei Lin, Hsuan Chuang University, Hsinchu City, Taiwan, R.O.C
Dr. Che-Chung Wang, Shih Chien University, Taipei, Taiwan, R.O.C
The Gray System Theory is characterized by trying to find the best decision-making plan by overcoming the conflicts and trade-offs between the objectives. This is most useful when the information is incomplete and all the multiple objects wish to obtain the greatest satisfaction. Currently this theory has been widely used in management science, therefore, this study is aimed at applying the characteristics of the Gray Theory to develop a model for evaluating the competitiveness of the household appliance industry. Moreover, this model is very simple in its application. A just and objective analysis on the competitiveness of each enterprise can be done as long as the financial statements publicized by the listed companies in past years are available. Considering that the household appliance industries in Mainland China are now rapidly expanding, the evaluative indexes in this study are particularly established through analyzing the competitive situation and strategies of the household appliance market in Mainland China. Finally, the financial data publicized by the listed companies in both Taiwan and Mainland China will be cited to verify the practicality of this model. The household appliance industry is one of the most important industries that affects people’s lives. This attracts an extremely large proportion of consumer consumption, so all the highly industrialized nations attach importance to its development. When Mainland China began to reform in 1979, the domestic household appliance industry lagged a great extent behind other countries. However, after more than 20 years’ efforts to attract foreign investment and technology, Mainland China has accumulated a lot in capital, technology, and experience. Therefore, the current household appliance industry in Mainland China is no longer as weak as in the past. In recent years, cashing in on its advantage of cheap labor and land costs, China’s household appliance industry has even been promoted to the international market.
Incidence of Social Protection Expenditure Convergence in the European Union
Dr. Tiia Püss, Mare Viies, Tallinn University of Technology, Tallinn, Estonia
Reet Maldre, Tallinn University of Technology, Tallinn, Estonia
Notwithstanding that social policy decisions are made on the EU Member States level, operating in a common economic space as well as common objectives under the Open Method of Coordination push social policies in Member States towards convergence. This article seeks to evaluate and verify the presence or non-presence of convergence in social protection expenditure in EU-15 countries and find which have been the most significant conditional factors that have influenced this process. We study the incidence of convergence in social protection expenditure in the EU using absolute and conditional b-convergence tests. Nevertheless, the organisation and financing of social protection systems is a responsibility of each European Union (EU) Member State, the EU has a growing coordinating role through the EU legislation to ensure adequate protection of people. The promotion of closer cooperation among the EU Member States for the modernisation of social protection systems started with the implementation of the Open Method of Coordination (OMC) adopted in the EU Lisbon summit in March 2000. In the framework of the OMC, common social targets are negotiated and common indicators to monitor the situation are defined, but the measures for achieving the objectives are decided by the Member States. OMC guides the Member States to work toward the common social policy goals of Europe, hence toward the harmonisation of social levels. Notwithstanding that social policy decisions are made on the level of EU Member States, economic integration as well as operating in a common economic space also indirectly push social policies towards convergence.Social protection expenditure in EU-15 increased in 1991-2005 in connection with the expanding needs for and rise in the level of social protection. Average social protection expenditure in EU-15 in 1991 was 25.2% of gross domestic product (GDP), in 2005 27.8%, whereas Sweden spent on social protection 32%, but Ireland only 18.2% of the GDP in 2005 (European, 2003; European, 2008). Social protection expenditure per capita in the same period increased from 3840 to 7364 purchasing power parity (PPS), whereas the amount and change rate of the expenditure vary considerably from country to country. The expenditures were the biggest in Luxembourg (12946 PPS) and Sweden (8529 PPS), the smallest in Portugal (4086 PPS) and Spain (4775 PPS).
Land Installment Contracts: Legislative Swing in Seller’s Favor is a Necessity in Today’s Declining Housing Market
Sherri R. Heyman, Esq, Law firm of Rosenburg, Martin, Greenberg, LLP, Baltimore, MD
Benjamin A. Neil, Esq, Towson University, Towson, MD
In today’s sluggish, but bargain filled real estate market, purchasers unable to qualify for conventional bank financing, may still be able to acquire their dream homes if seller financing, in the form of land installment contracts, is available (See References). This alternative financing scenario affords a less than credit worthy purchaser with the means necessary to become a homeowner. At settlement, the purchaser takes possession of the property, while the seller retains actual legal title. During the contract term, purchaser makes installment payments to the seller until the contract price has been paid in full. In the event of purchaser’s default, the purchaser forfeits all sums paid under the contract, as well as the property. Due to the often harsh consequences of a default under a land installment contract, many states have enacted statutes eliminating property forfeiture as an available remedy. In addition, many courts of equity have either refused to enforce forfeiture provisions, or have severely limited their use in land installment contracts. This pro-purchaser intervention by legislatures and judges across the United States has created uncertainty as to the enforceability of forfeiture provisions, thereby resulting in a disincentive for sellers to extend this form of financing to needy purchasers. This Article will examine the shift in the United States from strict enforceability of forfeiture provisions in land installment contracts, to the imposition of procedural requirements prior to forfeiture, and even the total elimination of forfeiture as a remedy. It will then address the impact such sweeping change has had on the viability of the land installment contract. Finally, the authors propose the reversal of paternalistic protections afforded purchasers, in favor of extending a protection to sellers in the form of strict enforcement of forfeiture provisions, or the guaranteed application of all contract remedies available at law or equity.
A Study Using Theory of Planned Behavior Model to Explore Participation Motivational Scale for Project Management Training Program
Dr. Ming-shan Chang, Chia-Nan University of Pharmacy and Science
In the era of knowledge economy, Project Management has been already the necessary management science and technology for organization development. The International Project Management Association (IPMA) was established from 1965 of Europe, and has devoted more than 40 years for project management training in the industrial field. It is the most historical and prosperous international project management system. Oncoming globalized competition, Taiwan Project Management Association (TPMA) assists and promotes Taiwan’s industrial competitiveness. TPMA introduces the knowledge system of International Project Management. TPMA promotes IPMA-D level Project Management Instructors. At present, there are 82 colleges and institutions participating and they are aliened strategically with TPMA. In academy, there were many researches exploring the courses participation motivations; however, fewer researches explore the nontraditional orientation. This research used the viewpoints of “Planned Behavior Theory” to build and analyze the participation orientations for D level Project Manager Instructors’ training program. Using “Planned Behavior Theory” as an evaluation tool for human behaviors is the academic mainstream in social science. Therefore, Theory of Planned Behavior as foundations constructs participation orientations for D level Project Manager of IPMA International Project Management Knowledge System, which is appropriate for Taiwan’s universities and colleges. In this research were found significant participation orientations for those project management students, especially behavior attitude. Taiwan Project Management Association (TPMA) founded in June 2002. Their mission statements were 1). to research the best approach of project management and promote applications to varsity industries, 2). to provide consulting services for business and help to solve practical project management, 3).to distribute project management in publication and to provide communication fields for industry and academy, 4). to promote project management training courses and cultivate professional people what business need (Taiwan Project Management Association, 2008).
A Study of the Current Learning Organization Profile to Elementary Schools at Pingtung County, Taiwan
Dr. Ching-wen Cheng, National Pingtung University of Education, Taiwan
Shakespeare said, “To be or not to be, that is the question.” For the organization in today’s world, the question is to learn or not to learn. In this global competitive era, learning is the only way to improve one’s survival ability, and so does an organization. For a Confucian cultural society such as Taiwan, the idea of learning has already accepted in people’s daily life. Although people in Taiwan believe that learning is very important for one’s life, they usually think that a person only needs to learn when he studies at school. In Taiwan, the idea of learning organization has been introduced form the Western culture, and is not developed from Confucius’ teaching. Is the idea of learning organization totally accepted to a Confucian society? That is the question which the researcher tries to find the answer. The main purpose of this study is to explore the current learning organization profile to elementary schools at Taiwan. Due to the limitation of research resources, the study only surveys elementary school teachers at Pingtung County, Taiwan. Due to a famous book The Fifth Discipline published in 1990, a revolution issue of “learning organization” became a significant trend for the academic area of organization development. Not only the business leaders but also the management of other areas concerned to adopt this strategy to improve their organizations. According to Drucker (1998), the concept of “learning organization” also includes education organizations, because education organizations have an increasing need to be more effectively in an ever-changing environment. In this global competitive era, learning is the only way to improve one’s survival ability, and so does an education organization. There is no doubt that education organizations should be transformed into learning organizations and focus on a continuous improvement process for a long term benefit. For a Confucian cultural society such as Taiwan, the idea of learning has already accepted in people’s daily life. Although people in Taiwan believe that learning is very important for one’s life, they usually think that a person only needs to learn when he studies at school. In Taiwan, the idea of “learning organization” has been introduced form the Western culture, and is not developed from Confucius’ teaching. Is the concept of “learning organization” totally accepted to a Confucian society?
The Service Quality Indicators Model for Theme Parks in Taiwan
Dr. Jiung-Bin Chin, Hungkuang University, Taichung, Taiwan
Mu-Chen Wu, Director of Library, Hungkuang University, Taichung, Taiwan
The statistics for the amount of tourists made by Bureau of Tourism, MOTC (2007) shows that the amount of tourists in the top 5 theme parks totaled more than 4.5 million men-times in 2007 with an estimated annual output value of US$150 million, including JANFUSUN FANCYWORLD, LEOFOO VILLAGE THEME PARK, YAMAY PARK, WINDOW on CHINA THEME PARK and Formosan Aboriginal Culture Village. It means the theme parks are already popular among consumers of different social stratums and have already become the one of major tourism spots for countrymen. As the countrymen demands for entertainment and tourism quality have become higher increasingly, and can’t be tolerate with few differences and high similarities among theme parks, futuristic overall development has thus become a challenge for theme parks. Therefore, theme parks shall own definite marketing objects and understanding and emphasize integrating special theme park atmosphere building, high-tech entertainment facilities and show and relative products and services as to make the theme parks owning complete service and functions for serving the purpose of perpetual business operation. This paper aims at analyzing how to construct service quality indicators model for theme parks in Taiwan, and to use 5 compositions of PZB service quality to be partial structure composition of this paper and to make references to current practical operation status as to develop the preliminary service quality indicators for this research. The Delphi Method will then be applied for integrating opinions from scholars professional with service quality or with tourism and management staff of top 5 theme parks in Taiwan to extract the finalized service quality indicators model for theme parks in this paper. Finally, conclusion and recommendation provide industry-related decision makers references to improve overall service quality in the future! Due to ever-lasting changes in Taiwan economic development and social structure and the holiday structure change caused by fulfillment of 2-day weekend since 1988, Taiwan countrymen have had thus more time for leisure and entertainment activities.
An Investigation of the Day- of- the- Week Effect on Stock Returns in Mauritius
Sawkut Rojid, M. Phil., University of Mauritius
Boopen Seetanah, M. Phil., University of Technology, Mauritius
Roodredevi Jhagdambi, Msc.,University of Mauritius
The day- of -the -week effect phenomenon is one of the most important calendar anomalies that have been observed in many stock markets in all over the world. This effect implies that a significant difference in stock return is observed on the different days of the week. This paper supplements the literature by bringing additional evidences on the day of the week effect for the case of an emerging African Stock Exchange, namely Mauritius, using daily data on the Stock Exchange of Mauritius Index (SEMDEX) from July 1989 to June 2008 and using the GMM approach. Results from the analysis did not find, in general, significant differences in stock returns across trading days in the market. The day- of -the -week effect is a form of market anomaly. Such anomalies are often tested for developed markets and there is limited evidence from emerging markets. Hence, there is a need to conduct some research about the information efficiency aspect of the Stock market of Mauritius. day- of- the -week effect is a contradiction to the Efficient Market Hypothesis (EMH), according to which no investor has the ability to have consistently have excessive returns for a long period. For many decades, many researchers have tried to determine find out if it is possible for someone to predict the future determination of stock prices. According to Fama (1970), efficient market theory states that “prices reflect all available information.”. In a perfectly efficient market it is impossible to outperform the market. Fama (1970) supported the existence of three forms of market efficiency: namely weak, semi-strong, and strong. However, there also exists the presence of so- called calendar effects, which imply that equity returns are not independent of the month of the year, week of the month and of the day of the week. These are evidences against random walk theory. We focus particularly on the day- of- the- week effect, which refers to the existence of a pattern on the part of stock returns, whereby these returns are linked to the particular day of the week. This hypothesis was first introduced by Osborne (1962), and later elaborated on by Lakonishok and Maberly (1990).
Investigating the Sensitivity of Variations in the Taste Distribution to Advertising Dynamics and Pricing Strategies in a Dynamic Duopoly
Yao- Hsien Lee, Institute of Management of Technology, Chung Hua University, Taiwan
Chien- Shiun Chen, Institute of Management of Technology, Chung Hua University, Taiwan
Sheu-Chin Kung, Institute of Management of Technology, Chung Hua University, Taiwan
This paper modifies the model of Piga (1998) by introducing the taste diversity and adopts a more flexible taste distribution form for consumers’ taste differences in the framework of perfectly cooperative advertising. The results show that increasing the value of taste diversity leads to higher prices and advertisings and the number of consumers. We use numerical illustrations to present managerial implications and give some insights into the steady state prices and advertisings in the context of an asymmetrical open loop information structure. In the last of 40 years there has been a growing interest in applying differential game models to investigate optimal competitive dynamic advertising and pricing decisions. In the areas of optimal pricing and advertising there is now a considerable body of literature; the reader is refereed to the survey articles by Sethi (1977), Little (1979), Feichtinger and Jorgensen (1983), Eliashberg and Chatterjee(1985), Dolan et al. (1986), Jorgensen (1986), Feichtinger et al.(1994), Erickson (1995), and Dockner et al.(2000, chapter 11). The above literature has indicated that previous advances in obtaining a useful understanding of oligopolistic dynamic behavior stem from two primary sources: noncooperative(or cooperative) game theory and economic dynamics. However, elements from both areas have been brought together with economics and management science mostly in the dynamic models of noncooperative game. The model-based literature on dynamic cooperative advertising is sparse. Recently, an attempt to study cooperative advertising in a dynamic game framework is Piga (1998) who analyses a differential game of duopolistic competition with a differentiated product where firms can use advertising and price as competitive tools. Piga assumes a market characterized by the fact that advertising can either be cooperative or predatory (see e.g., Friedman (1983); Fershtman (1991); Martin (1993); Slade (1995)) because advertising can both increase market size and affect market shares. Following the linear approach of Hotelling (1929), the consumers are assumed to be uniformly distributed on the interval [0,1] with a density equal to N consumers per unit length. Hence, the total number of consumers in the market is N. This implies that the demand side of a market consists of a large number of consumers with identical tastes and income levels.
The Effect of IMC on Brand Image of Laptops/Notebooks
Ying-Chu Lu, National Cheng-Kung University, Taiwan
Integrated Marketing Communication (IMC) is an evolutionary theory devised in the 1990s that combines the use of AD, PR, DM, SP and PS. The goal of this research is to find out how IMC, with its attributes of “one-voice, two-way communication, umbrella of all marketing mix,” works on the brand images of the competitive laptops brand industry. This research investigates (1) how to generate a marketing mix to achieve synergy and (2) the relationship between IMC implementation performance and brand image. From the 1970s to the 1980s, the US entrepreneurs developed an evolutionary theory of advertising in response to the economic recession. The American Association of Advertising Agencies (4A) named it “New Advertising,” while the ad industry veterans called it as “Whole Egg” or “orchestration” (Kalish 1990). This new approach sought to make advertising and communications more consistent and coherent. However, the fragmentation of media, new communication technologies, segmentation techniques and database applications threatened the traditional dependence on advertising agencies’ dependence (Hutton 1996), leading to the rise of integrated marketing communication (IMC). In 1950 the master of advertising, David Ogilvy, articulated the importance of brand image. He stated that all advertisement should contribute something useful to the brand image; because it is the brand the company is trying to sell for years, and the advertisements should project the same image year after year which is difficult to achieve. The very famous description of the importance of brand image of Ogilvy: “What you say in advertising is more important than how you say it!” (Ogilvy 1963) IMC involves integrating marketing mix on the basis of brand especially when entrepreneurs face the global market (Kevin 1999; Schultz 2001). A.C.Shu (1999) stated that the total value of integrated marketing communication (IMC) is to create brand equity and brand image.
Developing Hierarchical Structure for Assessing the Impact of Innovation Factors on a Firm’s Competitiveness - A Dynamic-Capabilities Approach
Dr. Shyh-Hwang Lee, Shu-Te University, Taiwan
The traditional corporate resource-based perspective of the past dictated that competitive advantage rested on a variety of mainstream elements related to basic core values like quality, cost and timeliness. Nowadays, innovation has become an important additional factor in the challenge to create and sustain competitive advantage in a rapidly changing business environment. However, there have been inadequacies in the conceptualization and transition into operation of organizational innovation constructs and its effective link to competitive advantage. In this paper’s dynamic capabilities approach of characterizing a firm as a collection of resources and innovation capabilities, a hierarchical structural model is developed to link innovation and core values to competitive advantage of a firm. Then innovation factors are prioritized to facilitate the understanding of the extent of the various impacts on competitiveness by applying an analytical hierarchical process integrated with a fuzzy approach. A case application taken from Taiwan’s IC design industry is demonstrated in the results section. This structure can be further utilized to assess the competitiveness of the firm itself. Managers and organizational researchers have long been concerned with studying how to build, evaluate and sustain competitive advantage of a given firm (Porter, 1980; Barney, 1986; Oral, 1986; Peteraf, 1993; Wiggins & Ruefli, 2002). Throughout the 1980s and ‘90s, business management was governed by the appeal of the sectors in which the company was competing and by the competitive position of the company in those sectors. Competitive advantage rested on a variety of mainstream values like quality, cost and timeliness during these two decades (McGahan and Porter, 1999, 2002; López, 2005). Although each factor remains important, it is unlikely by itself or as part of a group to provide a sustainable competitive advantage.
The Relationship Between School Success and the Emotional Intelligence of Primary School Headmasters and Teachers
Prof. Dr. Erol Eren, Dean, Beykent University, Turkey
Dr.Ercan Ergun and O. Cumhur Altýntas, Gebze Institute of Technology, Turkey
This study investigates the relationship between emotional intelligence and school success. To this end, empirical research has been conducted on a sample of primary school headmasters and teachers. Their emotional intelligence has been assessed and its relation to students’ success on the secondary school examination has been investigated. According to the results, a significant relationship exists between primary school headmasters’ and teachers’ emotional intelligence and their schools’ success. The number of research studies related to emotional intelligence has increased in recent years (Ashkanasy & Daus, 2002). The lack of satisfying results regarding the effect of Intelligence Quotation (IQ) on work performance in several prior research studies, however, has directed researchers to search for a relationship between emotional intelligence and work performance (Goleman, 2001). In this context, the aim of this study is to analzye the relationship between emotional intelligence and a school’s success. In this study, the emotional intelligence concept and its relationship with school success is addressed using the results of research among the headmasters of primary schools in Isparta city center. Emotional intelligence is described as the “right sensation of emotions, ability of evaluation and expression; ability of reaching emotions supporting to think and produce these ones; ability to understand emotions and emotional knowledge; ability to arrange the emotions to increase emotional and mental growth” (Mayer & Salovey, 1997: 10). According to this description, emotional intelligence has four main components (Goleman, 2001):
Purchasing Equals Happiness Equals Giving! How Do you Plan to Spend Your Weekend?
Mohammed M. Nadeem, Ph.D., National University, San Jose, CA
Happiness and peace of mind are attained by giving them to someone else. If happiness is incomplete until it is shared, then can consumers put a price on happiness? Aaker and Liu (2008) argued that when it comes to happiness and giving, we should think about time, and not necessarily about money to make others happy. Simply because beyond money, volunteering of time, and expertise (Aaker and Liu, 2008) should receive more attention due to its potential. Particularly when economic growth, by itself certainly is not enough to guarantee consumer’s well-being. Especially, when nothing in life is as important as we think it is (Kahneman, 1998) while we are thinking about it. If greater wealth implies greater happiness only at quite low levels of income then measurement of contentment becomes a reasonable inquiry. This research explores how consumer’s wealth levels have a limited impact on happiness. In addition, how people primed with time (Aaker and Liu, 2008) becomes more focused on high- rather than low-level goals due to the inherent association of time intentions and the future (Trope and Liberman 2003). This research mainly examines---if money doesn't necessarily buy happiness, what does? The final sections discuss the limitations of the exploratory study by providing conclusions and ideas for future research on how---purchasing equals happiness equals giving. Research on time and money, two fundamental resources in people’s lives, has enjoyed much resonance lately—particularly in the domain of decision making, the psychology of discount rates, and the valuation of future possibilities (e.g., Loewenstein 1987; Malkoc and Zauberman 2006; Zauberman and Lynch 2005). However, scant research has examined the downstream effects of asking individuals a simple question related to time or money such as, “How much time are you willing to donate?” or “How much money are you willing to donate?” What types of mindsets are activated when one thinks about time versus money?
Relationships among Human Capital, Human Liabilities, Self-Efficacy, and Job-Search Intensity
Dr. Yih-Yuan Yang, ChungChou Institute of Technology, Taiwan
Dr. Ying-Chieh Yang, ChungChou Institute of Technology, Taiwan
The purpose of this study is to explore predictors of obtaining employment. The study includes six hypotheses and one research question. Through path analysis, all hypotheses are supported by findings. The survey was sent to 800 respondents, but 623 questionnaires were usable, for a response rate of 77.9%. The effect of constraint factors/human liabilities of individuals on their job-search intensity is indirect and negative. Self-efficacy mediates relationships between human liability and job-search intensity, because human liability negatively influences job-search intensity through self-efficacy. Similarly, human capital has the indirect impact on job-search intensity. The indirect effect of human liability on self-efficacy through human capital is stronger than the direct effect of human liability on self-efficacy. Therefore, human capital mediates the impact of human liability on self-efficacy. The job-search intensity model in this study, finally, provides limitations and direction for future research related to job-search intensity. From subprime mortgage, Lehman Brothers bankruptcy, Merrill Lynch’s sale to Bank of America to the collapse of Washington Mutual, not only does the financial and economic crash of 2008 destroy the fiscal and monetary systems of the U.S. and Europe, but it also results in a major geopolitical setback for these countries (Altman, 2009; Morris, 2008). Moreover, James (2009) points out that the great crisis has caused the brutal recession in G-8 (the group of highly industrialized states). That is, consumers and businesses in the countries have deeply frightened by the crisis and then in response they have sharply retrenched. Not only do theses causes lead millions of people to be laid off, but they also strongly impact the global job market.
The Mediating Influence of Service Quality Satisfaction and Information Trust on the e-CRM Process Model: An Empirical Bank Marketing Research
Dr. Shu-Fang Lai and Dr. Ying-Chien Hsiao, Takming University of Science and Technology, Taiwan
Dr. Yi-Feng Yang, Shu-Te University, Taiwan
Yuan-Chih Huang, Takming University of Science and Technology, Taiwan
I-Chao Lee, Department of Business Administration, Kao-Yuan University, Taiwan
This study aims to achieve a better understanding of a natural e-CRM phenomenon, namely the mediation effect of marketing interaction relationship on the performance of its e-CRM process. A total of 300 questionnaires were distributed in the summer of 2006 to four Taiwanese banks, which had applied the e-CRM system to their customer service operations. Mediator hierarchical regressions were applied to the results, and it was discovered that when institutions used e-CRM services with web-based applications to create and raise levels of service quality satisfaction and information trust, this resulted in improvements in customer interaction, potentially helping the institution achieve the so-called “profit-maximizing portfolio” level. Our finding of this mediating effect in the e-CRM process extends previous insights on the leadership process to the new field of e-CRM study. Most empirical banking systems experience some degree of inefficiency in their business operations and performance, especially with regard to managing the quality of buyer-seller relationships and service marketing. Many studies have concluded that these arise for the following major reasons: the service is very complex and customized in the transaction process; the external environment is dynamic rather than static; and the marketing is uncertain when sellers are uncertain as to what the service buyers want. To respond to this challenge, many studies have suggested considering the concept of customer relationship management (CRM). The concept of CRM is often defined as the marketing interaction relationship between buyers and sellers (Christopher, Payne and Ballantyne, 2002; Ryals and Knox, 2001).
An Empirical Study on Operation Efficiency for Metropolitan International Hotels in Taiwan
Wong Chao-Tung, Doctoral Candidate, Dr. Chen Chia-Yon, Professor
Cheng Jung-Feng, Doctoral Candidate
National Cheng Kung University, Taiwan
Data Envelopment Analysis (DEA) can process the relative efficiency of multiple input and output resulting from decision-makings of multiple administration units and the efficiency value evaluated by such method is the most advantageous outcome under objective assessment. Fierce competition in overall Taiwan metropolitan international hotel industry is validated by the average overall technical efficiency ratio of 0.892984 in Taiwan metropolitan international hotels in as of 2006 deduced by the application of CCR and BCC respectively of DEA. The sequence of overall technical skill in respect of regional distribution is Taipei city, Hsinchu city, Tainan city, Taichung city and Kaohsiung ranking the last where their overall technical skill rankings are 0.934498、0.934017、0.894201、0.836523 and 0.804123 respectively. The efficiency improvement for international hotels of relatively low efficiency can be derived by slack variable analysis. Efficiency analysis evaluated by BCC (Banker, Charnes, and Cooper) model reveals that the average pure technical skill efficiency is 0.91546 and average scale efficiency is 0.974895. Further analysis regarding operation inefficiency discovers that hotels of non efficiency in term of real pure technical efficiency amount to 25, and hotels of real scale efficiency total up to 28. That shows insufficiency of scale efficiency is bigger than pure technical efficiency. Researches adopting sensitivity analysis are few normally. In respect of efficiency analysis results evaluated by sensitivity analysis adopted in CCR model, Taiwan metropolitan international hotels have competitive edges in such input factors as restaurant costs and such output factors as hotel room revenue and restaurant revenue but are competitive in such input factors as the number of rooms, ad campaign and employees’ wages. Understanding the competitive input and output factors owned by each hotel and offering decision-makers useful reference information can help each hotel maintain competitive edges. This research can provide the management some suggestions for decision making and futuristic management trends.
The Role of Employee Resource Groups for Different Sexual Orientation Employees in Corporate America
Gerald D. Hollier, Jr., University of Texas at Brownsville
This paper provides social and legal framework related to the validation of the Employee Resource Groups (ERGs) initiative of the Gay, Lesbian, Bisexual and Transgendered employees (GLBT) as a crucial step toward the realization of workplace equality. It presents and analyze data related to employment discrimination and employers health benefits. Then it proffers conceptual articulation about diversity Human Rights Campaign, followed by an application of the Corporate Equality Index. The paper argues that ERGs also help foster a sense of safety and acceptance for GLBT employees within the workplace. These groups provide a clear line of communication between GLBT employees and management, ensuring that policies and practices have their intended effect. GLBT ERGs have been involved in policy-making, providing input on marketing and workplace protection policies, attracting and retaining talented individuals, leadership development, cultural change and representation at external events. Today gays, lesbians are to be found in every type of organization, institution, career field, and profession. In the United States today, it is legal in 30 states (in the private sector of the workplace) to fire, decline to hire or promote otherwise discriminate against an employee merely because of his or her sexual orientation or perceived sexual orientation. At present no federal U. S. law addresses protection from discrimination on the basis of sexual orientation for private employers. Although not required by law, thousands of employers are already providing equitable benefits to their gay and lesbian employees. Many of the Fortune 500 companies and other successful businesses have been the quickest to adopt gay and lesbian inclusive policies.
Factors Influencing International Students’ Evaluations of Higher Education Programs
Dr. Jose María Cubillo-Pinilla, Universidad Politécnica de Madrid, Spain
Dr. Javier Zuniga, ESIC Business & Marketing School, Spain
Dr. Ignacio Soret Losantos, ESIC Business & Marketing School, Spain
Dr. Joaquín Sanchez, Universidad Complutense de Madrid, Spain
The purpose of this study is to analyze the factors that influence the decision-making process of overseas students. In particularly, we focus on the influence of the country’s and the institution’s image on the evaluation of the academic program. This study shows a positive relationship between the country’s and the institution’s image, as they are perceived by the prospective students, and how they evaluate academic programs. The country image exerts a strong influence on the institution’s image and, to a lesser extent, on the program evaluation. Likewise, a significantly positive relationship is evidenced between the institution’s image and the program evaluation. As a result of growth in the global economy and, in order to fulfill business requirements for international competence and skills, university graduates often evaluate the possibility of doing graduate studies abroad to improve their skills and capabilities. In recent years, the number of students in search of higher education (HE) programs abroad has risen sharply. Data from UNESCO for the 2002/2003 academic year showed that there are more than 2.1 million graduate students studying outside their home countries worldwide, a 40% increase from the 1.5 million in the 1989/1990 academic year.
Integrating Leadership Development and Continuous Improvement Practices in Healthcare Organizations
Stewart L. Tubbs, Ph.D., Eastern Michigan University
Brock Husby, The University of Michigan
Laurie Jensen, Henry Ford Health System
In the 2008 American presidential race, three issues were uppermost in the minds of voters, the economy, the war in Iraq, and healthcare. In addition, Zakaria (2008) makes a compelling case that all American business organizations are in danger of falling behind those of other countries, not because of our declines, but because the others are improving at a faster rate than we are. This paper addresses possible methods for improving American healthcare organizations using a Systems Approach (Tubbs, 2009; Atwater and Stevens, 2008). Specifically, it addresses proven methods for successfully integrating Leadership Development and Continuous Improvement practices in health care organizations. In 1999, the Institute of Medicine (IOM) published its report, To Err is Human (Corrigan and Donaldson, 2000), describing a fragmented United States healthcare system that was laden with errors and grossly unsafe for patients. The report detailed a comprehensive strategy by which government, health care providers, industry, and consumers could improve quality and safety with a goal of reducing medical errors by 50% in five years. The IOM followed up this report in 2001 with, Crossing the Quality Chasm, (Berwick, 2002; Leape and Berwick, 2008), outlining six dimensions of quality necessary to achieve its quality improvement goals. The six dimensions include: Safety, effectiveness, efficiency, patient-centered practices, timeliness and equity. Today, nine years later, there is still little evidence of any significant progress in achieving the 50% improvement sought by the IOM. All the while, the U.S. continues to spend more than twice the amount on health care as all other advanced industrialized nations, while falling well short of reaching achievable benchmark measures of quality care, underscoring the urgency for a new archetype necessary to transform quality and continuous improvement in healthcare (Anderson, 2004).
Complexities of Achieving a Single Pharmaceutical Market in the European Union
Aysegul Timur, Ph.D., Kenneth Oscar Johnson School of Business, Hodges University, Naples, FL
The pharmaceutical industry has complex characteristics not only in the European Union (EU) but also elsewhere. A defining difference from other industries is that several third parties, besides the manufacturer and consumer, are involved on both the demand and supply sides. Regulating the pharmaceutical industry is a particularly difficult challenge for policy makers, who seek low health care costs and affordable drugs, but also want accessibility to the highest quality medicines and more generally a successful industry. All these complex characteristics magnify the difficulty of achieving a single market in pharmaceuticals through the market integration process of 27 nations in the European Union. It is a fact that pharmaceutical policy is still primarily determined at the national level due to differences in health care systems, pricing and reimbursement regulations, but there is some evidence of movement toward “European Community” and the harmonization of markets across the members by the European Commission’s expanding role. The pharmaceutical industry in the European Union has experienced a great deal of effort on the part of member countries to harmonize disparities among health care systems and regulation and reimbursement practices. The purpose of this paper is to look for some evidence toward the achievement of the single market by looking at price differences in five major pharmaceutical markets. The results show that progress toward the achievement of a single market is evident in that price differentials are decreased over time between 1994 and 2003, relative to a low priced country, Spain.
Hybrid Approach in Neural Network Design Applied to Financial Time Series Forecasting
Dr. Chokri Slim, Manouba University, ISCAE, Tunisia
Artificial Neural Networks (ANN) has been successfully applied to the financial time series forecasting, which offer greater computational power than the classical linear models and detect the complex behavior in the data. Several algorithms have been proposed for choosing the best architecture and training the network. However, one of the main difficulties of ANN’s design is the selection of an adequate architecture. In this paper, we propose a hybrid approach based on genetic algorithm (HNN) for the selection of an optimal architecture and learning parameters for the ANN. The platform of evaluation of the novel model involves comparisons with Classical backprobagation Neural Network (CBNN), Stochastic Neural Network (SNN) and the Fuzzy Neural Network Model (FNM) .The daily data of the TUNINDEX from Tunisia Stock Exchange is collected for technical analysis. The results find that while the proposed HNN is running yielding nets that requires a lower computation cost and perform consistently well from classical search. Statistical methods and neural networks are commonly used for financial time series forecasting. Empirical study have shown that Neural Networks outperform linear regression, Arn (1993) and White (1992), since stock markets are complex, nonlinear, dynamic and chaotic Trippi (1996). Neural networks are reliable for modeling nonlinear, dynamic market signals Baum et al (1988) and Eiton (1993). Neural Network makes very few assumptions as opposed to normality assumptions commonly found in statistical methods. Neural network can perform prediction after learning the underlying relationship between the input variables and outputs. Back-propagation neural network is commonly used for price prediction.
Corporate Governance and Earnings Management: An Empirical Study of the Saudi Market
Dr. Mohammed A. Al-Abbas, King Khalid University, Saudi Arabia
This paper seeks to examine the association between corporate governance mechanisms and earnings management in the Saudi business environment, utilizing a sample of Saudi joint stock companies for 2005, 2006 and 2007. Earnings management is measured by current abnormal accruals using Teoh et al.’s model (1998).Regression analysis examines the relationship between earnings management and corporate governance variables (including board composition, board independence, separation between the responsibilities of the Chief Executive Officer (CEO) and the Chairperson and the composition and independence of audit committees). In addition, the auditors' size, and a number of other variables have been included to control for other influential factors. The results of the study provide no evidence that corporate governance factors mitigate against earnings management in the Saudi environment. However, auditing firm’s size negatively relates to abnormal accruals, which indicates that auditing firm’s size is an important factor with regard to the extent of earnings management. The results highlight the need to enhance the legitimacy of corporate governance in Saudi corporations. In addition, it provides insights into the audit quality role to mitigate against earnings management which, in turn, ought to be considered by audit committees in their decisions of selecting audit firms.
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